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No
Points/Closing Costs
A No Points/No Closing Cost mortgage is when Referral Mortgage pays all the closing costs associated with the mortgage at the time of closing. This option is not available on every single loan scenario. To get all the closing costs paid usually requires a minimum loan size of $150,000. Depending on the loan size, closing costs can amount to upwards of $1500. The borrower is always responsible for paying the "prepaid " items like real estate tax and homeowners insurance escrows. This is not an ad gimmick. We do not add these costs to your loan amount, but rather offer the customer the option to pay a slightly higher interest rate in exchange for paying the closing costs at the time of closing. You need to estimate how long you will keep the loan; then decide where the balance is and what works best for you. There are many reasons for choosing this "No Points/Closing Cost" mortgage option. Some of the most common reasons are: 1) Lack of equity in the property when refinancing to roll the closing costs into the loan balance. A No Points/Closing Costs mortgage makes sense under this scenario when coupled with lack of cash to close. 2) Lack of cash to close. If you are purchasing a new home and are short on cash for the down payment, this option can save you upwards of $1500 on your purchase. 3) Although paying points and closing costs will give you a lower interest rate and a lower monthly payment, it typically takes about 3-5 years of living in the property to realize the benefit of the lower monthly payment when weighed against the total cost of the points and closing costs. Estimated time in a home is about 3.8 years. 4) Some people object to paying any closing costs, points, or loan fees. The slightly higher interest rate spreads their closing costs over a future monthly payment. Apply Online
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